The Morgan Hill City Council will consider a long list of items and expenses to prepare for the transition to a new fire services provider next year; complete construction on the Butterfield Boulevard southern extension; replace its top two staff members who recently announced their resignations; and to begin the lengthy general plan update process, among others, when the body conducts its first meeting in nearly a month Wednesday.
A public hearing is scheduled at the meeting for the proposed purchase of two fire stations in the city limits, which are currently owned by the Santa Clara County Central Fire District. Earlier this year, the Council decided to go with a new fire services provider – Calfire – in order to save on costs.
According to the current contract with the County, which is set to expire Jan. 3, the City has to purchase the two fire stations – one at East Dunne Avenue and Hill Road, and one on Old Monterey Road – before the contract term is over. City staff proposed purchasing the properties for a total cost of about $3 million, based on recent independent appraisals and negotiations between the City and County.
City staff also proposed financing the purchase with a 22-year lease-purchase agreement. If approved Wednesday, the City will pay $294,000 per year until the properties are paid off.
Also on the Wednesday agenda to ease the transition to a new fire and EMS provider are the proposed purchase of firefighting breathing apparatus for about $32,000, contracting with the County Department of Environmental Health for hazardous materials inspection services and hiring Dr. Howard Michaels as the City’s emergency medical services consultant at a cost of $16,800 annually.
The five-year, $19.2 million contract with Calfire inked by the Council in August will save about $800,000 off the current cost of the Central Fire contract. For fiscal year 2011-2012, the City paid Central Fire about $5.6 million for firefighting and EMS services.
The Council will also consider paying about $355,000 in extra drainage and road work costs related to the Butterfield Boulevard southern extension. The Council agreed to pay the extra costs with remaining redevelopment bond money Nov. 7, but as of Monday City staff did not know if the state Department of Finance was going to approve the expense.
Since the redevelopment agency closed per state law Feb. 1, all use of the agency’s former assets requires DOF approval.
On Wednesday, the Council will consider using unappropriated drainage impact fee revenues, and public facilities revenues instead of the bond proceeds. The added costs would cover unanticipated extra work that was done by two engineering consultants under contract for the project.
The road project, which will extend Butterfield Boulevard from its current terminus at Tennant Avenue in a southwesterly direction to Monterey and Watsonville roads, is behind schedule due to a lack of work by the contractor on aspects of the project, according to a City staff report. The completion deadline was recently extended to Dec. 23, but staff do not think the contractor will meet that deadline.
The staff report noted that the City will pursue charging the contractor, RGW Construction, “liquidated damages” for each day beyond the approved deadline that the project is delayed.
Furthermore, RGW Construction has already filed two claims with the City – one seeking $3.1 million for engineered earth fill requirements, and one seeking about $6,700 for grout installation, the staff report said. The City has rejected both claims, but expects the contractor to file more claims related to various costs on the project before the roadway is complete.
With City Attorney Danny Wan’s announcement last month that he will be leaving his Morgan Hill job for a general counsel position with a much larger agency – the Port of Oakland – the Council will consider a contract to hire Gary Baum as the interim City Attorney.
The contract would allow a maximum amount of $85,000 for Baum’s services as City Attorney until a new permanent city attorney is hired, according to a City staff report. The contract is proposed to go no later than March 31, 2013.
The proposed contract, which is on the consent calendar of Wednesday’s agenda, would pay Baum a monthly salary that is about the same as what the City currently pays Wan in salary and benefits, according to City staff.
The Council will also hear an update from Mayor Steve Tate on the ongoing search for a new city manager.
City Manager Ed Tewes announced this summer that he would be resigning his position at the end of this month. However, according to a report from Tate, Tewes has agreed to stay at City Hall until March 1 in order to “provide continuity of administrative leadership,” he said in an updated resignation letter to the Council.
The City hired Ralph Anderson and Associates to recruit a new city manager for Morgan Hill shortly after Tewes announced he was stepping down. The deadline for applications was in November, and the Council is expected to begin interviewing a list of preferred candidates in the coming weeks, in order to choose a new city manager early next year.
Also on Wednesday’s Council agenda are proposals to negotiate consulting agreements with The Planning Center/DC&E to begin the general plan update, infrastructure master plan update, comprehensive zoning code update and associated environmental documents.
The City Council will meet at 7 p.m. Wednesday at City Hall meeting chambers, 17555 Peak Ave.
